Managing leave without pay in QuickBooks Online Advanced Payroll
You can manage leave without pay by creating leave categories that don’t track the leave balance for an employee. This means you can create leave categories that employees are eligible to apply for without needing to accrue the leave first.
To start using leave categories without tracking leave balances:
Go to Payroll Settings, Leave Categories.
Create a new leave category or click on an existing leave category, and for the Employee leave balance, select Not Tracked.
Now when a leave request is created using a leave category without a tracked balance, the leave balance is not checked.
When this leave request is applied in the pay run, there is no associated balance, and no warnings about employees not having enough leave.